Converting to Limited Liability Partnership
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a limited liability partnership (LLP)?

  • A structure that does not protect personal assets from business debts and liabilities
  • A type of business with unlimited personal liability for partners
  • A form of business that offers no flexibility in ownership and management structures
  • A legal structure combining the advantages of a partnership and a corporation (correct)

    • Why is converting from a private company to an LLP considered a strategic move for businesses?

  • It increases personal liability for partners
  • It reduces the flexibility in ownership and management
  • It limits the benefits for the partners
  • It establishes a more favorable legal and financial framework (correct)

    • What is one of the benefits of converting to a limited liability partnership?

  • Limited personal liability for partners (correct)
  • Unlimited personal liability for partners
  • No flexibility in ownership and management structures
  • Increased personal liability for partners

    • What does an LLP offer in terms of personal liability for partners?

    <p>Limited personal liability</p> Signup and view all the answers

    What is the key advantage of an LLP's management structure?

    <p>Flexibility in ownership and management structures</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser